Information and communications technology has received a much-needed shake-up in Papua New Guinea.

Bank of South Pacific CEO Ian Clyne displays a new generation mobile EFTPOS machine, which takes advantage of the dramatic expansion of PNG’s mobile phone network.

The first phase of PNG’s information and communications sector deregulation occurred with the issuing of a mobile phone licence to privately-owned Digicel PNG in July 2007. Digicel immediately started to compete aggressively with state-owned incumbent, Telikom PNG. Mobile phone coverage in PNG exploded, as did the number of users—there are now an estimated 12 million mobile phones in PNG!

Suddenly, delivery of services via mobile phone—from bill payments to phone banking—has become a reality (largest bank BSP has already set up over 200,000 mobile banking accounts). It has transformed business communication too, connecting buyers and sellers across the country.

Phase 2 began in 2011, with the establishment of the National Information and Communications Technology Authority (NICTA), a new regulator charged with opening the sector up to further competition and removing any final Telikom PNG monopolies.

Now, any company can apply for a licence to deliver any ICT service and many have already done so. Mobile phone, satellite and internet services appear to be the most popular areas for growth. In mid-2102, Lae and Madang were finally connected by fibre-optic cable, enabling businesses along the PNG mainland’s northern coastline to access internet services at previously unheard-of speeds.

First published in Made in PNG 2012